Inventory Financing
Access liquidity against eligible inventory to support procurement and operating requirements.
Financing Supported by Your Asset Base
Access revolving financing supported by eligible receivables, inventory, and other business assets. We structure asset-based lending facilities around the value and availability of your collateral.
Asset-based lending (ABL) provides businesses with access to revolving working capital secured by eligible accounts receivable, inventory, and other qualifying assets. These facilities can support ongoing operations, inventory purchases, supplier payments, and increased financing requirements as businesses grow.
By leveraging the value of existing assets, companies can access capital without relying exclusively on operating cash flow. We structure asset-based financing solutions around each company's collateral, operating cycle, and working capital requirements, providing flexibility as business needs evolve.
This approach can be particularly valuable for companies managing longer collection periods, seasonal fluctuations, or growing inventory requirements.
Borrowing Base Financing
ABL facilities typically establish financing availability through a borrowing base, which applies approved advance rates to eligible collateral.
As customer receivables are collected or inventory levels change, borrowing availability may adjust accordingly, allowing the facility to reflect the company's underlying asset base.
For inventory-backed facilities, collateral valuation may consider Net Orderly Liquidation Value (NOLV), which estimates the recoverable value of inventory through an orderly sale.
We also evaluate eligible cross-border collateral arrangements when the transaction, jurisdiction, and security structure support such financing.
Working Capital Backed by Business Assets
Receivables-Based Financing
Use eligible outstanding customer invoices to support revolving credit availability.
Seasonal Working Capital
Manage fluctuations in borrowing requirements associated with inventory and receivables cycles.
Business Transitions
Support qualifying liquidity requirements during expansion, restructuring, or operational changes.
A Revolving Facility Based on Eligible Collateral
- 01
Collateral Assessment
We evaluate accounts receivable, inventory, and other eligible assets, including collateral quality, value, and availability.
- 02
Borrowing Base Structuring
We establish advance rates and financing limits based on the approved collateral pool.
- 03
Revolving Financing
The company draws and repays funds against available borrowing capacity, with periodic collateral reporting supporting ongoing borrowing-base calculations.
Financing Parameters
Terms are indicative and subject to underwriting and transaction requirements.
- Facility Size
- $3M–$100M
- Structure
- Revolving asset-based credit facility
- Eligible Collateral
- Accounts receivable, inventory, and other qualifying business assets
- Advance Rate
- Up to 90% on eligible receivables and 60% on eligible inventory
- Facility Term
- 12–36 months
- Eligibility Considerations
- Collateral quality, eligible asset values, concentrations, and operating requirements
$16 Million ABL Facility, Increased to $20 Million
Supporting Growth Through Receivables and Inventory Financing
Industrial Equipment
The Challenge
An industrial equipment distributor experienced significant growth, with working capital requirements increasing by 44%. Extended inventory cycles and customer payment terms created financing needs beyond the capacity of its existing lending arrangement.
Our Solution
We approved a $16 million revolving asset-based lending facility, secured by eligible accounts receivable and inventory, including qualifying cross-border collateral. The structure provided advances of up to 80% against eligible invoices and 50% of inventory costs, with an $8 million inventory sublimit. Months later, we increased the facility to $20 million, maintaining the inventory sublimit.
The Result
The expanded facility incorporated updated borrowing-base reporting, collateral monitoring, and inventory valuation requirements, providing additional approved financing capacity for the company's working capital needs.
Industries Using This Solution
See how this structure can address industry-specific cash cycles and collateral.
Put Your Business Assets to Work.
Explore asset-based financing solutions supported by eligible receivables, inventory, and other collateral.